Hertz Global Holdings Inc (HTZ)

Working capital turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Revenue US$ in thousands 9,371,000 8,685,000 7,336,000 5,258,000 9,779,000
Total current assets US$ in thousands 764,000 943,000 2,258,000 1,096,000 865,000
Total current liabilities US$ in thousands 3,096,000 1,738,000 1,592,000 2,979,000 2,425,000
Working capital turnover 11.02

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $9,371,000K ÷ ($764,000K – $3,096,000K)
= —

Hertz Global Holdings Inc.'s working capital turnover has shown a consistent increase over the past three years, reflecting an improvement in efficiency in utilizing its working capital to generate sales. The ratio has increased from 3.09 in 2021 to 6.50 in 2022 and further to 10.03 in 2023.

This upward trend indicates that the company has been able to generate more revenue relative to its working capital investment. A higher working capital turnover ratio suggests that the company is effectively managing its current assets and liabilities to support its operations and sales growth.

The significant improvement in the working capital turnover ratio over the years reflects positively on the company's liquidity management and operational efficiency. It indicates that Hertz Global Holdings Inc. has been able to optimize its working capital resources to drive revenue generation, potentially leading to improved financial performance and sustainability in the long term.


Peer comparison

Dec 31, 2023

Company name
Symbol
Working capital turnover
Hertz Global Holdings Inc
HTZ
Avis Budget Group Inc
CAR
Ryder System Inc
R